Abu Dhabi National Oil Company (Adnoc) awarded Larsen & Toubro (L&T) a contract worth more than Dh1.25bn to develop a small onshore field as the emirate boosts its energy ties with India.

L&T Hydrocarbon Engineering said the the scope of the contract includes engineering, procurement, construction and commissioning of flow lines, gathering facilities and pipelines to transfer crude oil & gas from Haliba fields to processing facility at Asab and installation of 132 kV and 33 kV overhead electrical transmission lines to supply power.

L&T will undertake engineering works in the Haliba asset, which is operated by Adnoc subsidiary Al Dhafra Petroleum and will start production at 20,000 barrels per day (bpd) by mid-2019. Production capacity of the field located along the south-east border of Abu Dhabi will be increased to 40,000 bpd by 2020.

The award to Mumbai-based L&T, one of India’s largest infrastructure and engineering companies, comes after Adnoc awarded a 10 per cent stake of an offshore field to a consortium led by the international arm of ONGC, India’s state-owned explorer.

The agreement with L&T forms part of a raft of economic pacts signed between the UAE and India following the visit of its prime minister Narendra Modi on Sunday.

The agreement with the ONGC to develop the offshore Lower Zakum for 40 years, is the first hydrocarbon rights agreement between Abu Dhabi and Asia’s third-largest economy. The move comes amid increasing efforts by Gulf producers to service growing Asian demand by offering investment opportunities to lock-in long-term supply.

Last year, China National Petroleum Corporation won an 8 per cent stake in Adnoc Onshore. China Energy also took a per cent stake in the Adnoc subsidiary that operates onshore concessions in the emirate, including the Bab, Asab and Bu Hasa fields.

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